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For Etsy Sellers

Tax Return for Etsy Sellers

Complete your Self Assessment in 8 minutes. Claim all your allowable expenses and submit directly to HMRC.

  • Track order income
  • Materials and packaging expenses
  • Platform fee support
  • MTD-ready for 2026

Example Tax Calculation

Based on typical etsy sellers earnings £26,000/year

Gross Income£26,000
Expenses8,000
Taxable Profit£18,000
Income Tax£1,086
National Insurance£326

*Illustrative example based on 2024/25 tax rates. Your actual tax depends on your specific circumstances.

Allowable Expenses for Etsy Sellers

Claim these tax-deductible expenses to reduce your tax bill

Materials and Supplies

Raw materials and supplies used to make products.

Tip: Keep receipts and supplier invoices.

Packaging and Postage

Mailers, boxes, labels, and delivery costs.

Tip: Track postage by order or batch.

Etsy Fees

Listing fees, transaction fees, and payment processing costs.

Tip: Download statements from Etsy.

Production Equipment

Tools and equipment used to create products.

Tip: Claim business-only items or apportion use.

More expenses you can claim

Product photography costs
Advertising and promotions
Workspace costs
Accounting software fees
Website hosting
Craft fair fees

How to File Your Tax Return

Follow these simple steps to complete your Self Assessment

1

Gather Your Documents

Collect income records, receipts, and expense statements

2

Enter Income & Expenses

Add your earnings and claim allowable expenses with our guided flow

3

Review Your Calculation

See exactly how much tax you owe with real-time calculations

4

Submit to HMRC

File your tax return directly to HMRC in minutes

Key Deadlines for 2024/25 Tax Year

Don't miss these important dates

5 April 2025

Tax Year Ends

Calculate your final income and expenses

5 October 2025

Register for Self Assessment

If this is your first year self-employed

31 January 2026

Online Filing Deadline

Submit your tax return and pay any tax owed

6 April 2026

MTD Starts (£50k+)

If your income exceeds £50,000, you must use MTD software

Late Filing Penalties

1 day late: £100 fixed penalty

3 months late: £10/day up to £900

6 months late: 5% of tax owed or £300 (whichever is higher)

12 months late: Additional 5% or £300

Plus interest on any tax paid late. Avoid these costs by filing early with QTax.

Frequently Asked Questions

Answers to common questions about tax returns for etsy sellers

Do I need to register for Self Assessment as an Etsy seller?

If your Etsy income exceeds £1,000 in a tax year, you must register for Self Assessment.

Can I claim postage and packaging?

Yes. Packaging materials and delivery costs are allowable expenses.

What records should I keep?

Keep sales reports, receipts, invoices, and records of Etsy fees.

Related Guides

Explore tax guides for similar professions

Ready to File Your Tax Return?

Join thousands of UK etsy sellers who trust QTax for their Self Assessment